A Pennsylvania-based manufacturer has been stripped of control over its Russian operations under a Kremlin order, posing new risks for Western companies as Moscow courts renew economic ties with the United States.
CANPACK, a global aluminum beverage maker owned by a Pennsylvania-based holding company, has operations in several countries in Europe and North America and its Russian business – worth about $700 million – has been placed under state “foreign administration” by December 31, 2025. to state-appointed managers.
CEO Peter Giorgi said the company lost all operating rights when administrators came in mid-January.
“I’m just a nominal shareholder,” Giorgi said in an interview with Fox News Digital. “I lose all control of the company.”
Bipartisan senators probe Kremlin-linked delegation’s meeting with our officials
The case underscores the risks faced by Western companies based in Russia during wartime, even as Moscow is interested in rebuilding economic ties with Washington as part of potential peace talks.
Read on the Fox News app
According to Reuters, Putin’s foreign investment envoy Kirill Dmitriev is in the United States to discuss a potential Ukraine peace deal and future economic aid with President Donald Trump administration officials.
Analysts say the move is part of a broader shift in Russia’s handling of foreign-owned assets since the Ukraine war.
“Let’s not be US-centric about this,” said Alexander Kolander, a fellow at the Center for European Policy Analysis. “Canpac is not alone.”
Russian President Vladimir Putin delivers a speech at a meeting of the Federal Security Service Board on February 24, 2026 in Moscow, Russia. ·Reuters
CANPACK has operated in Russia for nearly 30 years and holds an estimated 35%-40% share of the country’s aluminum beverage market, according to the company, underscoring the scale of the acquisition.
According to a person familiar with the matter, the company has no direct access to or communication with Russian operations after the move, and several senior executives — including the general manager and chief financial officer — were fired after the acquisition.
Company officials have said executives in Russia have faced pressure from state-appointed administrators, including demands to approve financial decisions under threat of dismissal or other consequences.
According to officials, the situation has not changed in recent months. The company’s Russian operations remain under external administration, with no restoration of control or ownership as of April.
The move falls under a legal framework introduced in 2023 that allows the Russian government to place some foreign-owned assets under temporary state control.
The decree identified a company called Stalement as the entity overseeing the assets, which company representatives describe as a shell organization with ties to the Russian government.
The company has raised the issue with US authorities, but no formal action has been taken.
The Kremlin has blocked access to its owners to a US-linked company operating under temporary external administration in Russia.
Russian business daily Vedomosti reported in February that Canpac’s Russian division had donated nearly 500 million rubles to a pro-Kremlin fund supporting Russia’s war effort in Ukraine.
The company believes that about $18 million was directed to state-linked funds supporting Russian operations, with another about $6 million sent to the Russian Orthodox Church, based on Russian media reports and information relayed by former executives. Fox News has not independently verified those claims.
The estimated transfers represent a small portion of the company’s overall value, but underscore how quickly financial control can change under external administration.
After Moscow’s full-scale invasion of Ukraine in 2022, the company continued to operate in Russia, even after many Western firms left the market.
Giorgi said the company considered exiting but faced challenges, ignoring decades of investment and unable to find a buyer at the right price.
“We decided to stay the course,” he said, adding that the company hoped the situation would eventually stabilize.
The same December 2025 decree also targeted the Russian subsidiary of Danish insulation manufacturer Rockwool. Other Western companies, including France’s Danone and brewer Carlsberg, have faced similar actions by Russian authorities in recent years.
“We’re talking about dozens of companies,” Colyandra said.
Kolander said that US-based companies have in some cases behaved more cautiously than their European counterparts.
“American companies fared much better than European companies,” he said, pointing to Moscow’s interest in preserving the prospect of improved relations with Washington.
He said the trend was exacerbated by Russia’s full-scale invasion of Ukraine in 2022, when Western companies began suspending operations or pulling out of the market.
“It all started in earnest at the beginning of the war,” he said, adding that it was easier for authorities to control property.
From the Moskva River, the Kremlin and Moskva City’s high-rises and business district (background) can be seen behind the bridge.
Kolander said the policy reflects a broader redistribution of wealth aimed at bringing profitable or strategic assets under state influence.
“It sends a signal to the system that if you don’t toe the line, your assets can be confiscated,” he said.
He added that while the process may generate some revenue for the state, the war fund is unlikely to be the primary driver.
Click here to download the Fox News app
“On the one hand, it helps generate a little cash for the budget,” he said. “But I don’t think that’s the main reason.”
The Russian Embassy in Washington and the Russian Foreign Ministry did not respond to requests for comment.
Original article source: Russia has seized control of a US-linked firm as it pushes for renewed ties with Washington
